Triumph (TGI) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the third quarter were $315.6 million, an increase of 10.8$285.0 million in the prior year period[143]. - Operating income rose to $39.3 million, compared to$19.7 million in the prior year period, reflecting a significant improvement[143]. - Income from continuing operations was $14.6 million, or$0.19 per diluted common share, compared to a loss of $11.9 million, or$(0.15) per diluted common share, in the prior year[143]. - Total net sales for Q4 2024 reached $315,556,000, up 10.7$284,955,000 in Q4 2023[158]. - Total net sales for the nine months ended December 31, 2024, were $884,067,000, an increase from$833,456,000 in the same period of 2023[183]. - Total net sales for the nine months ended December 31, 2024, were $884.1 million, a 6.1$833.5 million in the prior year[196]. Sales Breakdown - The Boeing 737 program accounted for approximately 8% of revenue for the nine months ended December 31, 2024, down from 14% in the prior year[146]. - Commercial OEM sales decreased by $16.9 million, or 11.8$14.7 million, or 24.1%, driven by higher sales volume on the V-22 and CH-53 platforms[160]. - Commercial Aftermarket sales rose by $14.8 million, or 42.3$17.5 million, or 14.8%, primarily due to increased spares sales across several platforms[186]. - Systems & Support segment net sales increased by $61.5 million, or 8.6$11.6 million, or 10.0%, due to reduced volume on the 737 program[198]. Profitability Metrics - Adjusted EBITDA for Q4 2024 was $54,208,000, a 90.5$28,556,000 in Q4 2023[157]. - Operating income for Q4 2024 was $39,297,000, compared to$19,711,000 in Q4 2023, reflecting a significant improvement[164]. - Operating income for the nine months ended December 31, 2024, was $79.8 million, an increase of approximately$38.2 million from $41.6 million in the prior year[188]. - Consolidated gross profit margin increased to 32.5$167.4 million compared to $122.6 million in the prior year[200]. Cash Flow and Financial Position - Cash used in operating activities for the nine months ended December 31, 2024, was$109.8 million, compared to $68.3 million in the prior year period[143]. - Cash flows from operating activities showed a net outflow of$109.8 million, compared to a net outflow of $68.3 million in the prior year, driven by timing of receivables and payables[205]. - Cash flows used in investing activities decreased by$7.1 million, totaling approximately $15.4 million for the nine months ended December 31, 2024[206]. - Financing cash flows for the nine months ended December 31, 2024, were$128.4 million used, primarily due to the redemption of $120.0 million of 2028 First Lien Notes[207]. - Current assets decreased from$721,953,000 to $560,506,000, a decline of approximately 22.3$61.5 million for the nine months ended December 31, 2024, from $94.4 million in the prior year, attributed to lower debt levels[194]. Strategic Developments - A definitive agreement for a merger with affiliates of Warburg Pincus LLC and Berkshire Partners LLC was entered into, expected to close in the second half of 2025[141]. - The company completed the sale of third-party maintenance, repair, and overhaul operations in March 2024, classifying these results as discontinued operations[142]. - Forward-looking statements indicate potential uncertainties regarding capital requirements and the completion of a proposed merger[221]. - The company faces risks related to market conditions, customer relationships, and potential litigation associated with the merger[221]. - The company emphasizes the importance of optimizing its asset base and executing restructuring plans to enhance future performance[221]. Accounting and Risk Management - The company has not disclosed any material changes in critical accounting policies since the last annual report[220]. - There has been no material change in market risk exposure during the reporting period[222].